5 Unconventional Questions to Ask When Exiting


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🚀 This Week's Amazon Hack: Exiting Is a 2-Way Street

I don't know what it is about us Amazon native sellers, but a bad habit of ours that needs to go away is acting like potential buyers of our businesses hold all the cards.

Yes, they may control the purse strings BUT that's not all of the story.

When you're selling your Amazon business, stop viewing it as a one-way street. The potential buyer of your business should feel some pressure too.

After all, this is your baby that you have invested countless hours, blood, sweat, and tears into. Start treating it as such.

OK, let's assume you're working with a broker and have 5 phone call interviews with buyers lined up over the next month.

What should you ask them?

1- "What are your short-term and long-term plans for my brand?"

Really get into the weeds and see what they have in mind for potential growth and brand expansion. This is your baby. You don't want to sell to just anyone.

2- "How much Amazon experience do you have?"

If you have to train your buyer from the ground up, it's not only going to be painful, but you risk losing out on something called an "Earnout". This is a bucket of money that is only paid out to you if they reach quarterly profit goals. it's not uncommon to have 10-15% of the total exit amount to be locked up in this bucket.

3- "What does the transition look like?"

Figure out what the next 12 months will look like. Do they need you on part-time? Are they comfortable with the staff that will be switching teams? Maybe you can negotiate a long-term salary deal here. Offer up value.

4- "What is your time commitment?"

Many buyers of Amazon brands don't have a clue as to how much work these businesses really are so you want to make sure you aren't selling to someone with unrealistic expectations. Your 15 hours a week might be 25 for them.

5- "What are your crisis management skills like?"

Present possible scenarios like account suspension, black hat sellers, and false IP infringement claims. You can ask these questions in a way that won't scare them off. You'll want some assurance that they have a plan during emergencies.

That's a wrap! Not only will these questions help ease your concerns about potential buyers but they will make you come across as even more deserving of the high multiple you are seeking!

Remember, don't settle. Most people only have one exit in their lifetime. 4-6x EBITDA should be your goal.


🔥 Hot Amazon Seller News: Another Day, Another Ad

This one is a game-changer.

For years, it has been an absolute pain for brand owners to manipulate the algorithm to show other products from your brand in the “frequently bought together” section.

That’s all changing soon.

Amazon is officially testing ads in this section. My gut tells me that this is going to be a slam dunk and brand owners will be able to secure these ad slots and ensure competitors are iced out.

But why is this ad slot so important?

2 MAJOR REASONS:

1- AOV baby!

With rising FBA fees and historic inflation, increasing your average order value is paramount. This is an easy way to achieve that and you never have to worry about whether you have the slot secured like in the past.

For many brands, this will easily boost their AOV past $100 which is considered the MECCA on Amazon. High AOV is the ultimate zen mode.

2- Brand Awareness

Look, Amazon’s platform is inherently “hard” to get other ASINs from your catalog in front of customers who are already “warm.” This changes that dramatically.

“Oh, sweetie, I found the perfect Yeti cooler. Oh, wow, I’ve been needing a tumbler and this green color is sick!”

These conversations simply weren’t happening very often. Now, you’ll be able to control what customers see. A huge win for sellers. And sellers need a win right now.

Where can I turn these ads on?

So, some bad news. Amazon is actually beta-testing these ads on your behalf so right now you’ll have to just wait a bit.

HACK: Amazon will beta test these ads on your behalf if you have automatic sponsored products turned on for your products.

Another hack is if you don’t want Amazon showing a specific product in this ad slot, simply set that ASIN as a negative target. Voila!


Jon Elder

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💪 Send Product to Influencers and 5X Your Amazon Revenue! Look, I’ll be honest. Selling on Amazon without utilizing influencers is like tripping yourself on purpose. Finding influencers can be hard but my good friends at Stack Influence make it as easy as pie. They automate collaborations with Micro Influencers through product giveaways and you watch your sales go to the moon. If you’re launching, their fully managed platform boosts sales immediately. This generates instant momentum for your...